HM Revenue p45 form is issued by the employers to employees usually at the end of May when the tax year ends. It informs the employees about the amount of tax deducted from their salary. 

Purpose:

The purpose of this form is to get familiar with employee earnings annually and the amount of tax deducted from their salary.

Contents:

 The P60 form contains the following information:

• Employee’s information such as (name, address, National Insurance number).
• Employer’s information such as (name, address, PAYE reference number).
• Total gross earnings (before tax) for the tax year.
• Total deductions made for Income Tax and National Insurance contributions.
• Net pay (take-home pay) after deducting tax and NI contributions for the tax year.
• Tax code used during the tax year.
• Adjustments are made during the tax year, if applicable.

Usage: 

The P60 form is given to employees at the end of May when the tax year ends.

It serves the following purposes:

• Tax Returns:

 P60 form helps the employees to complete their self-assessment tax return (if applicable) to reconcile their income and tax paid for the year.

• Proof of Income:

This form is used as proof of their income which they need for various purposes such as applying for a loan.

• Verification:

It ensures that the amount of tax deducted from their salary is accurate and correct.

     Retention:

 Employees should not lose P60 forms and keep them in a safe place. They may need these forms for several purposes, such as when dealing with tax matters or financial applications.

 

                   How do I get a P45 Form?

1. You can get this form by asking the previous employer for the document or a copy of it.
2. If there is any problem in the first step, they can request an official declaration from their former employer.
3. It is the responsibility of employers to provide a P45 form to their employees.

         How can I get a P60 UK Form?

Employees obtain the P60 form at the end of each tax year from their employers. 

If an employee is engaging in multiple jobs for the success of the company, they will receive the P60 form for each job, which informs their earnings and tax deductions from each salary of the job.

If an employee loses their P60 form, they should contact their current employer, who should keep copies of the P60 for three years.

The P60 forms provide a summary of an employee’s pay and tax information for the entire tax year.

 Employees and employers must check that the P60 forms are accurate, correct, and current to stay compliant with HMRC regulations.

   Differences and Similarities of the P45 and P60 form

 Both P45 and P60 forms deal with the taxes and National Insurance Contributions but they differ in tax period coverage and the information. 

The P45 form is issued in the period of employment termination. The detailed taxes and National Insurance Contributions must be paid up to that point.

 The P60 form is issued when the tax year ends. It is provided by the current employer,  who summarises the employee’s total income and tax amount deducted from their income for that year.

                      P45 & P60 Working Together

Employees receive multiple P45 & P60 forms from their employers when they are engaging in multiple jobs according to HMRC regulations.

 Each job contains separate forms and tax amounts deducted from each income. It is important to pay the tax amount accurately and should not lose these forms and keep them in a safe place.

  Employees engaging in multiple jobs should follow these steps:

1. Collect tax information from different P45s and P60s.
2.  Their total income from all jobs is represented by the tax records.
3. Keep these forms separate from each other.
4. Organised the forms according to each job.
5. The tax information was managed effectively.
6. Maintain compliance with HMRC regulations.

                      Paper vs. electronic copies

These forms are stored as paper and electronic copies depending upon the employee’s preference.

Paper copies are helpful in case of electronic data loss or system malfunctions, but they can be easily damaged, misplaced, or lost.

Electronic storage has advantages over paper storage, including:

• Easy to access, retrieve, and organise forms.
• Low risk of loss or damage.
• Time and cost savings as compared to paper or ink cost.

Conclusions:

Both employees and employers need to follow the HMRC regulations to get familiar with tax records and prevent discrepancies in tax calculations.